Union says milk factory workers owed $20K

The Gippsland Trades and Labour Council says workers at a South Gippsland milk factory are owed about $20,000 in unpaid wages.

The trades and labour council says 12 workers at the Toora Milk Factory walked off the job on Thursday and local contractors are also owed money.

The former Bonlac milk factory was bought by Viplus Dairy and its parent company Funton Holdings last year, with plans to eventually export baby formula to China.

The secretary of the Gippsland Trades and Labour Council, John Parker, says it is the second time workers at the factory have not been paid.

"But I've said to them I'm prepared to sit down and work out the issues with them but the workers have got to be paid up-front, because they're doing it hard and they need to [be] assured that that money is coming," he said.

A spokesman for Viplus Dairy, Leon Toors, says the workers were owed money by another company paid to manage the project.

He says Viplus Dairy is trying to resolve the issue and will meet the Gippsland Trades and Labour Council this week.